it what you will. s&p higher by 25 point at 1451 but the big winner in percentage terms is nasdaq, up 72 point or 2 1/3%. where the s&p is up double digits, every time it is a gain for the year ensuing. there another one here. >> you forgot the left-handed oboe player. >> every time becky is seen after 11:00 p.m. in a new year, it is a good sign. >> so goes the month of january and so goes the year, let's hope. >> let's hope indeed. see you tomorrow at fund manager of the year awards. that does it for "power lunch." "street signs" begins in about four seconds. so hang on. we'll stay here. see you tomorrow.

>> happy new year people of earth and welcome to the market melt up. everything everywhere is surging as congress strikes a deal. but one year does not a year make so we've got your lucky 13 play book ahead. but does the deal really deal with the debt at all? your guess says no will debate. plus the other stuff inside the deal including big breaks for nasc nascar, asparagus, and we will let you know how much your taxes are going up. >> what a party pooper. i don't want that news. the market seems to be liking it at least fto with a surge of 263 points, the big nest six months. in fact stocks have not fallen on the first trading day of the year since 2008. but it's only been five times the dow add triple digit gain on the first trading day. indeed, today could end up being the sixth. now a team of market reporters

lined up for you. bob, want to get down to you. how much are people saying this is a relief rally that we have a deal? >> it is really the first trading day of the year that i think it is lions share. but i want it know the new highs. this is continuation of a rally that began at the end of november. when we started rallying, hoping a fiscal deal would happen here. look at this. new high on the russell 2000. this is the etf. an historic high. new high on the mid cap index. an historic high. noteworthy numbers now that you can see in the history books. i've been asked about why one sector a certain group of retailers are on the side today. you can say higher payroll taxes, a super gain will impact consumer discretionary spending. if you will notice in the last four years, every single day,

first trading date of year, s&p up 1.6% last year, 1.1% the year before and 1 .6 the year before that. the first trading day in the last few years has been a strong one. >> history is on our side, thank you. i want to ban these words in 2013, risk on. only after i use it. we have money coming out of bonds, going into stocks. i can see the ten-year yield is spiking. >> these are the highest yields since mid october for ten-year since mid september for 30-year. even the dollar index has reprieve today when the euro lost a boat load ground and yet we still hang on to our gains on the yen. but to address your question and your issue specifically mandy, literally there are hundreds of people on the floor. last year and this year, looking

to be big sellers, higher yields in 2013. and if you look at flows, it makes sense. but i would caution that if the only catalyst for yields are the biggest catalyst is rising stocks, athink at some point the tail wags the dog in the higher yield mitigate that rally to some extent. >> that's a good caution to take. thank you very much, rick. let's find out what is happening now as i see wti inching towards $93 bucks a barrel, sharon. >> a very strong start to 2013 for oil and metals mandy and we are looking at oil prices but really metals prices leading the rally higher here that we are seeing in kmode see commodities. there is a lot of new money in the marketplace as well. the fact that fiscal cliff was averted, the fact a deal has been done, that encouraged some buying we are seeing here. we look at oil prices that are

above the 200-day moving average. that is significant for wti price. we are looking at gold prices that yes, after 12 straight years of gains are continuing the gains here in 2013 but i got to mention another commodity that a lot of traders are watching that is not doing well at all. that is natural gas. natural gas prices are plummeting to the lowest levels we have seen since september and it has been light liquidity in the overnight session that started it but also warm temperatures coming. warmer than normal in the next six to ten days. that's another factor. back to you. >> thank you very much. though nobody loves this deal at least we have a deal. many think a battle could be coming be with the debt ceiling. what is in this bill? john har wood, amman jafers, steve leesman, stand at the ready. john first to you, give used that lines, nuts and bolts of this deal. >> nuts and bolts, brian, are the ones we have been talking

about for the last couple of days as we reach agreement toward the end of the deadline. 39.6 as top rate for incomes above $400,000 for individuals. $450,000 for married couples. estate tax or inter tans tax goes up from 39% to 40%. that is intexed so it grows in few you too years. have you tcapital gains and dividends for top earners, that means that the dividend rate which had been scheduled to go to 39.6 will not do that. other elements of the deal are an extension of unemployment benefits. have you the doc fix which has reimbursements, doctors from plummeting. alternative minimum tax which is fixed, meaning that tens of millions of families don't get effected by the alternative tax initially intended to hit people at the top of the income scale. what we do is have a deal that

raises about $600 billion in revenue over ten years. not adequate to what president wanted or what we need for solvency in combination with spending cuts but a first step, baby step, brian. >> thank you very much for the nuts and bolts as brian would put it john howard. now what? where do we go from here? let's bring in eamon javers. eamon? >> we will keep going over the cliff, mandy. the patch work that john just outlined, what they did on the sequester side, those are the big spending cuts that were supposed to kick in and that was put off by two months. we will see another big fight over spending at some point in early march, late february timeframe and same exact time you will see a whole big fight over the debt ceiling. treasury secretary has said that we have hit the debt ceiling but put in place what they are calling extraordinary measures to push that off as long as possible. that can go possibly about two

months as well. that puts us into early march. at the end of march, you looking at a fight over the continuing resolution, which is the piece of resolution that funds the operation of the u.s. government. that is coming due again. a fight that could threaten a government shut down. so uch got a whole series of battles coming up in march and we will start fighting today on those and we have seen some fighting today over this hurricane sandy relief bill. so there are a lot of fights still to come here maybe. >> strong words, eamon, but right now let us bring in steve liesman. does this deal increase or decrease yield deficit? >> yes. >> what? >> yes. >> that's the perfect economy answer. >> perfect political answer. >> no, no. and it bears on everything john said. it bears on everything eamon said. because the answer to the question you just asked is directly related to the fight

we're going to have. it depends on the outlook, blue or red glasses, and what measure you use. let me show you the estimate in the last day. effect of the fiscal cliff on deficit. so what's the problem, steve? it raises the deficit. not so fast. all of that is relative to the march 2012 baseline of what would have happened had the bush tax cuts all gone away. nobody thought that would happen but that's the law. there is another way it look at it, which is what happened to the deficit as a percent gdp and that's how the market looks at it. we did these calculations. these are back of the envelope stuff. 2012, 7%, 7.2%. had the old law stayed in effect, we would have 3% point drop in gdp. but that would have been

recession. no one thought that would happen. instead what you will get is more revenue relative to what you had last year, estimated, so you go down about 6%. then if you saw what happened in 14. then overtime, just so you know, doing all this stuff will add to interest cost over time about $400 billion over ten years which escalate like this as you go forward. but one more thing, i want to talk about this thing. so what happens to the deficit? the question is whether both sides will assist on more deficit reduction. that comes to a head in a couple months. here are some questions i'm calling march fiscal madness. the administration said you know what, the tax hikes offset the need foresee questfor sequester. >> here is the problem, i have a graphic for you sir, take a look

at this. >> dualing graphics. >> this is the average income single earner couple will get versus what they pay in. solve that mp how do you solve that? >> everything else is on the margin. >> brian, that is 100% true. it is 100% a problem. it is an issue. but not an issue for today. it is not this year's issue or next year's issue. when do you want to solve this? you want to solve that problem today? >> yes. >> today? >> is 2 solvable? is it something the market will solve for us? we are going to have a nasty dave reconing. >> we could issue and print money and it could -- >> can i ask a question? is washington helping or hurting our economy right now? >> good question. it is hard to --

>> cowardly congress -- >> i'm more charitable towards congress than the average person. i think we blame congress for not making decisions we haven't made. very want come to a consensus so congress hasn't made it and we haven't ourselves. >> starting off the year with a bang. let's bring in james and michael. with how the mark set taking this deal, michael, is this a good deal for the market? >> well it provides certainty to the markets. i think that is one of several reasons they are going up today. you touched on others. but i don't see this as a grow package long-term. i don't think it changed for the better. the structural dynamic of the taxation we need to grow the economy the way we need to. i think all it does is give certainty. other problem is we will live with this for a while. not only have we hamstrung ourselves now but for the next

several sears yeah with a tax policy which i don't view as pro growth. >> that's what scares me is nobody is talking about growth. just where can we extract the most money. >> yeah. that is the problem. typically the year after a presidential election is not a high growth year for the economy because things like this typically happen. have tax hikes. earlier this morning say on your program estimates after percent cut in the growth of our economy due to the tax hikes. could have been worse but it is not good as it is. when you punish success, you get less of it. that's the big problem that we face. when you look at the stock market though, everyone had been scared. you knew people in my neighborhood who weren't sleeping at night for fear of the fiscal cliff. clients selling all their gainers to take the gains that they could at the lower rates so that pushed the market down i think on a basis and we are likely to enjoy the relief rally as much as 2 t is. >> how long will the relief rally last, michael? is this something you are

selling into? >> no. er with not selling. er with continuing to look for longer term opportunities. er with at longer term diversified funds. not only equities but opportunities and bonds as well as precious metals. i think assets will rise going forward because you do have what this bill didn't do is tackle spending. so you've got loose monetary policy. you've got deficit spending. that is inflationary. that's risk of deflation -- inflation. that is good for gold and commodities. from that standpoint, i think those assets are good. have you sequester fight in march coming up as well as debt ceiling. i think that brings us right back to where we were during the month of december in terms of the investor angest out there. so i don't -- >> okay, guys. guys, sorry. we have to cut you off. we have breaking news from the new jersey governor. happy new year, gentlemen. bri brian, news from governor

christie. >> yes, we is talking about superstorm sandy not getting help. he is not mincing words. basically comparing it to other tragedy answers there is no doubt about who he blames. >> 31 days for andrew victims. 17 days for victims of gustav and ike. ten days for victims of katrina. for victims of sandy in new jersey, new york and connecticut, it has been 66 days. and the wait continues. there's only one group to blame for continued suffering of these innocent victims. the house majority and their speaker, john boehner. >> christie said over the weekend, he was assured this would get done. if you don't know the story, near the end of the session in the house of representatives, did not take unthe bill and now they have to start over from scratch and after 11:20 p.m., christie says, he called john

boehner four times and the call was not picked up. back to you. >> certainly a man never to mince his words. disappointing and disgusting, i think says it all. >> on deck, we asked the head of the fix the debt campaign this question, if you had one word to describe the deal, what would it be? we have just one word for her answer, which is awesome. >> then later on, the madman himself, he says, forget the deal. he has just one mission in the new year and that is of course to help you make some. don't go away.

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all right, welcome back. let's go to jarod bernstein. you heard chris christie blasting congress. you the peter king from new york state dot same thing earl earlier today. on on the lack of vote with sandy funds. which is $60 billion. same as tax increases estimated to raise for next year. let's go to jarod and don. guys, going to throw an audible here at you. because by are hearing pretty harsh words in congress from both sides of the aisle about sandy relief. jar jarod, first, your take. >> >> well, chris christie always stood up for his con stit yenlt, even when turning against

his party. here is a strong example. you saw the same thing at the end of the election with president obama. if he truly expected to get the help, the senate passed it. i don't know if you mentioned that yet. the senate passed the sandy bill. if he had john boehner saying that, he has every right to be an insensitive as he is is. >> passing the bill later this more or perhaps during this month, don, what do you think about this? >> i think john boehner has had a rather rough month. i think we should cut the guy a little slack. this will get done in a couple days. let's move on. >> you think it is that simple though? they are complaining saying it was much faster -- >> i'm afraid -- they won't take it up in the next couple of days unfortunately. don has a point in that i think it'll get done. but christie has a point when he says it has taken much longer for d disasters in many ways less

damaging than this one? >> why? because of the fiscal cliff? >> it just has to get on another legislative bill somewhere. >> don, i think the frustration is, the american people, when you dig into the fiscal cliff bill, it has benefits for asparagus farmers, depreciation for nascar tracks. congress has the ability to take those things in. take the time to cut and paste and slap things in. but can't seem to get around it a vote in the house for an pornlt issue. >> this is fairly typical of lame duck fashions. especially with a bill like fiscal cliff. other important things are held hostage and sometimes the clock runs out. you just go got realize these are human beings. they are sleep deprived, angry, this is the most brutal game of poker ever played in washington. believe me, they will take this up in a couple of weeks. believe me, if it were me, i would have passed the bill. move on, they will pass it early

next week. we know that. >> hopefully that will get down to it and pass that aid bill super, super fast. in the meantime, back to the issue of raising the fiscal cliff deal. i want to bring in the head of the fix the debt campaign. maya, give it to us point blank. how would you race it? >> i think the description i gave to your producer doesn't work on a family friendly show. this is pathetic. if there wasn't a moment to fix this problem, i don't know when we will do it. this fiscal cliff meant to replace the bad policies that did too much deficit reduction too quickly. instead, we did an 1 17b8g hour deal, bare minimum, really just the political system at its worse and we need to rise to the fiscal challenges and put in place a sensible plan. otherwise the economy,

households, the whole country is continuing to pay a real price for congress and the white house's inability to fix these problems. are it is really disappointing. >> how do we fix it? we showed graphics from what people get for entitlements, versus what they spend. and cross income levels. people that make a hundred thousand a year, 500,000 households as a matter of fact. it seems that everybody want everything and nobody wants it pay. how do you solve that? >> that's exactly right. i'm glad we are talking about entitlement reform because that is one of the things that wasn't sufficiently part of the discussion. we have to reform entitlement in this country. both social security and medicare are unsustainable. the programs trustees tell us that every year. we have to make changes by scaling back what we promise so it is not above what we contribute to programs. we can do this in a sensible way that preserves and strengthens

programs for people who depend on them if we make changes now in advance of when we are forced to. and we can can phase them in dwrad gradly make sure they work for people who depend on them. but this constant kick the can down the road means people are really vulnerable to the fact that we haven't made changes yet. >> i can't agree more. but if i try to find a silver lining, jarod, we have the revenue side of the deal done. at least the next debate is squarely on spending, right? i hope we won't blow the chance to get this right. >> i'm afraid that while the republicans would like the next part of the debate to be exclusively on spending, the president said he would like to get back to the revenue well. he started out at 1.6 trillion and ended up at 600 billion. i agre with something maya said. though i'm more favorable towards the deal than she is. this deal doesn't stabilize the debt, around here we think after ten-year budget window. in fact the president's own

budget does stabilize the debt. in other words the debt grows more slowly in the economy and that's a goal. the fact that this deal didn't do that means it is an incomplete deal. people like maya are looking for the big grand deal, and i respect that. i look for the incremental. this makes you look at it in literally a couple of months. >> don, senator bob corker of tennessee essentially said this morning, i will paraphrase it, that the ceos part of the debt commissions that went to the white house were used. i think he called them lackeys for the president. because nothing really got done. do you agree with that? >> i do. i think the president also used the middle class people as props to just put up behind himself while he bashes republicans. >> let's be fair, middle class now seems to be anything that's not incredibly poor or $250,000 a year. >> middle class is just a word

that gets trotted out in defense of whatever political position anyone wants it take. if you are a democrat, you are off on the middle class. if you are republican you are for small business. these are just feel good words. they mean absolutely nothing. here is reality. you just heard it from maya, let me repeat it. i don't want to pair a phrase. we have a spending problem. we have a promises problem. we made stupid promises long ago that we can't keep because there aren't enough young workers to pay old retirees and healthcare benefit recipient what was promised to them 30 years ago. so that graphic you showed cannot be solved because you can't tax more, you can't give them less, either side will make that graphic worse. it means you are putting in more to get less. promises will have to be broken folks. can y put a hundred percent tax rate on everyone in america, and it

won't fix this. >> we were talking about corker who put forward a proposal. i believe he still hopes this gathers traction. that is 1 trillion in entitlement reform in return for 1 trillion raise on debt ceiling. this s this something you think will realistically get support? >> i think one thing that senator corker has done that is admirable is he gets getting specific about the kinds of policies we need to be changing. he has an idea of his own. one of the things we didn't see in the negotiation nets past months was, the specifics of how to deal with the spending, entitlement and revenue side of this in terms of tax reform. back to your point about the ceos. the ceos who came to washington delivered a message. we have to fix this problem, stabilize a debt and put it on a downward path. we have to deal with all parts of the budget. what we didn't do is the message they brought was, spending, entitlement reform and tax

reform, we got a deal with all that -- >> can i make one point? i'll be quick. we must never forget in the entitlement discussion that the typical income of medicare and social security beneficiary is 23,000. let us be very careful about not whacking vulnerable -- >> i agree with that -- >> what else do they receive. >> i'm not saying we shouldn't reform entitlement. we need do it in a way -- >> i'm literally getting screamed at in my ear. >> happy new year. >> happy new year. quickly, let's end with this chart. courtesy of folks at zero hedge. don't always agree with what they write. but but they are right on this. now let's talk about the budget deficit. >> oh, keep going. >> there's the problem folks. >> ticking up as we speak. >> we'll be back with more right after this. better place

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the cliff deal raises taxes but less than president obama hoped for. he wanted a top tax rate of 39.6 from current 35%. he got that but only on individuals making $400,000 more or households making 450. obama wanted 250,000 as cut off. there are hundreds of thousands of tax payers in that group that will no longer have to worry about a tax increase. obama got his increase on capital gains to 20%. but the big one, dividend were huge upside surprise. obama wanted the race to go from 15 to 39.6. that's why we saw all those accelerated dividends last month. it only went to 20%. this is huge for wealthy investors and for ceos. another biggy that's been lost in the news today is the estate tax. obama wanted 45% rate on estate of 3.5 million or more. under this deal it is 40% on estates of 5 million or more. lot of wealthy americans slipping under that higher bar.

carried interest was also under attack. that money earned by private equity. hedge fund guys? no change there. for average 1 percenter, the cliff deal raises half as much in terms of tax increase than the obama plan. for a million plus earners this means taxes would have gone up average of $180,000 under obama. instead their taxes are only going up by $120,000. so yes, taxes go up on the rich and they are not happy but some of them feel $60,000 richer today after last night's deal. >> some would say, if you fear monger for the worse case scenario, then you will be relieved with the other scenario. which is the lesser two of evils. >> and the wealthy are expert planners so they were planning or not expecting or hoping for, but planning for the worse.

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okay, we are extremely happy and very privileged to have mad money's jim cramer here. we have a lot of things to talk about with the fiscal cliff. do you feel we have solved anything or just basically pushed this cliff further down the road there for creating a bigger problem for policy makers down the line? >> no, i think we solved something. >> what did we solve? >> you asked about the idea that dividends, so important to capital formation for people at home. dividends are taxed low versus what we thought. capital gains going to stay in the game. not that bad. many incentives it stay in the stock market swrount otherwise

and the stock mark set a great wealth creator. i think some things have been solved. i don't think it is as negative as some people have heard. >> we have had tough talk on show so far. lot of talk about debt. give us reason or reasons to be optimistic in this lucky 2013 year. >> okay, i believe there are tail winds that we came in with that are very strong. this housing situation remains strong. don't forget, i heard back and forth on sandy and whether there will be money coming. i hope there will be governor christie made a strong case for it but there is a substantial rebuild. hurricane andrew created an increase in the gdp. that employed a lot of people. when have you housing going well and autos going well and potential rebuild. >> and the rest of the world, particularly europe, struggling. so capital likes us. no? >> well, i think that europe will be bottoming and that there will be money coming out of bonds in europe.

i think that japan is making a major move. asia is good. we could be pulled up by others despite ourselves. >> okay, pulled up by how much. give us your best crystal ball estimate with what stocks will have in 2013. >> this is difficult. because what will happen is the midst of the debt ceiling and people say, jim, we're down 7% and you said buy. i mean, what i want to do is just emphasize that through thick and thin, if you invest through high quality companies in the dow for instance, you will be surprised. dow is only up 7%. there are tail end of the dow. a caterpillar could go up a lot. >> mighty mites, she always says this. just because you are little doesn't mean you are bad. >> mid cap record highs, russell record highs. >> we are talking about the russell tonight. i think there could be a major break out here. >> from current record highs? >> yes. i think there is a lot of good happening with a lot of different companies and maybe we spend too much time paying

attention to washington. >> so we need to block out headlines and block out headlines -- >> look, if you are really upset, you go to the japanese etf. look at eww. i talk positive about mexico. i think the peso will go up substantially. chili, colombia, peru, i think the days are number. a real bad anchor to latin-america. >> i have to take this opportunity to mention japan. this is one of your 2013 predictions that japan would be the best performing market this year. >> and how big is that economy? pretty darn big. >> and half -- yeah, they just make a couple of tweaks -- >> are they back up and running, you think? >> well, when have you the printing press and people still want it buy your debt. i think our fed has shown, right? >> anything is possible. >> they did rebuild in early '90s in a terrible disaster. what i think the nuclear radiation has kept the rebuild at a minimum. and that could change.

finally wbt nuclear radiation was hoe rendous there. you couldn't just put the homes back. i love your point too -- >> forgive me, guys. i think barry put this out. showing the the average age of large assets in america. not assets, but cars, refrigerators. that they are record old. americans are driving the oldest cars. appliances are old. in other words, they have to replace -- that replacement cycle, the minute people start to feel better -- >> it is building up. behind the dam. >> yes. whirlpool add big year. yes it is still way behind the market. i traded a whirl pool for my law school dorm in 1982 with these prices. i think whirl pool could be a very inexpensive stock that is a very well run company now. it wasn't well run for a long time. >> i would like to ask you as well, since we are talking about unlimited money printing. was to you that put out a fantastic note this morning

about diminishing returns we get from the fed's push, right? and to what extent do we feel the fed is not going to be so much after factor in a rising market this year. and i have the stats here. after qe1 was announced, 77% after qe2. i think gaining 22% since september. what has the market done? flattish? slightly down? is the fed no matter a factor we need to talk about? >> this is easy money. easy money is good. i was talking p this morning, you have to lock in that mortgage. my thoughts for 20131 rates will go up. the economy will be better than people think. >> get your refie now. >> i wonder if this can keep that up. >> there are treasuries -- >> they've got it now. i just don't know if they can keep it. >> we never established the word of 2013. we had hopium two years ago.

i think munich should be the word of 2013. that's a honey boo boo term. eunuchize. >> who knows how long they can that v that up. you have it so they don't buy bonds. you see the real rates of bonds and congress does panic opinion but obviously, i think everyone coming on identified that spending is way out of control. that we don't have enough people to afford the future. but i refuse to be as negative as others. >> a spendaholic. >> senator corker is amazing. he is. he is just amazing 37 by the way, very good friends of peyton manning. could be super bowl. you talked about that during the break. >> denver 21, seattle 24. >> isn't that what corker stood for? >> absolutely. >> by the way, folks, you can

tweet us with a better 2013 word than eunucha spz sized. >> please. >> for all of the unicorns fantasized. >> you can catch jim tonight at 6:00 on cnbc. >> final print, nascar, tom cruise and algae, not related story, sort of, all celebrating this deal. and another downgrade, what do you think? >> i think the jury is out. >> the jury is -- >> the jury is out. >> we're back right after this.

coming up on closing bell. bill gross is back with us. he has been skeptical of the stock market and this rally he is skeptical of as well. we will explain why. and dividend taxes staying the same for most americanes. but we will hear from some who say dividend stocks are very risky right now. apple, listen to this, testing another new iphone and

could be much different from the current version. find out if it is enough to turn that beaten down stock around now notwithstanding. kelly evans is with me today. we look forward to being with you at the top of hour. could be an interesting hour for the new year. >> thanks, bill. let's bring in mary thompson. talking about the fact that we have a deal. do we have a downgrade? >> we went know until later this year. there is a focus as to whether or not congress will address the long-term deficit. and do they put a plan in place that slows the trajectory of debt to gdp ratio. that what moody's want. moody's coming out and reiterating it today. it avoids revisicession so that good. there is a plan to limit growth in our debt here in the u.s. we have it wait just as we watch

the debt ceiling debate coming up, budget debate, there is where you will see whether or not the rating agencies are downgraded. both moody's and fitch have said, if we don't downgrade the deal we will have debt. >> what kind of market reaction could we see in august of 2011 when we got the s&p downgrade. >> you would think this would be a negative for the bond market and higher jeelds. that is not what happened. it was a safe haven and you have the fed in there buying. th . >> and moody's just came out moment ago under a statement saying they do anticipate further action. >> yes. >> whatever that means. >> right. >> if there is not action, they would downgrade. >> here is my issue. mandy and i sort of argued about this in our polite way a couple of weeks ago. i understand the short term economic impact may be a downgrade. shouldn't we get an upgrade.

spending goes down and tax revenue would soar. isn't the opposite the problem? >> with the fiscal cliff, hadn't we gotten a deal? sho >> shup that result under upgrade? >> there are various elements they look at in determining a rating. one is the economic outlook. the dern was -- >> for a year -- >> rights. so no, you wouldn't upgrade it when going into recession. >> negative outgoing for aej inhe ises. thank you so much for keeping you are eye on that. well revisit all this in a couple of month's time. don't take off the pins guys. up next, street talk rally edition. should you get in on the studs or duds? [ male announcer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant

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it is street talk time. why don't we take a look, first of all, at facebook which is higher on an upgrade. >> ad revenue will rise through the first part of 2013.

>> very welcome news. >> target is the opposite side of that equation, down on a downgrade. >> talked a lot about retail recently. jeffrey's holding it from a hold to buy due to a tough holiday season and poor online business. slashed their price target from 59 bucks and they cut their target long term to 78. >> a deal, nope, not that deal. a deal in the zip car and avis world. >> avis buying zip car, $500 million cash. 12.25 a share, 50% premium and look at that stock, up 84 bucks. zipcar, part of avis budget grip. >> let's find out more about market reaction to the fiscal cliff deal and bring in the managing director at webbush security. give us the pros from the market for this deal and give us the cons. >> well, i think the pros are pretty overwhelming. this was a big concern of the

market. that this would lead to significant reduction in potential gdp growth in 2013. the markets have the opinion that's been significantly alleviated and we got about as good a package as we could have expected. actually finally got some compromise out of wall street. the bad part was we didn't deal with the expense issue. we didn't deal with the spending issue. we kicked that can down the road for two more months where in sequestration would come back, and then you're going to have the debt ceiling debate go on, so the bad part of it there's still issues -- business to be done, so to speak. >> what would you do with dividend-paying stocks? would you sell down, or are they a buy? >> they are less of a buy as of today. many large dividend -- paying companies got sold off as part of this fiscal cliff concern in november and early december, and today they are all up dramatically. i think there's more room to run here. there's a great disparity between equity income securities and fixed income securities

right now. double-digit yields available in many, many different avenues. you just don't see that in bonds these days so i think that's a great place for an income investor to look is in the dividend -- paying companies. >> i want to bring up the issue of retail stocks, something bob pisani has been beating the drum b.considering there's a payroll tax increase of 2%, will there be a curb on consumer spending? will we continue to see outperformance by retail sector stocks, do you think? >> no. i think the consumer sector will be impacted. certainly by the payroll tax that's going to be hitting everyone, the reinclusion of that, and at the high end, your high end consumer simply won't have the kind of money to spend that he did last year or the day before, so clearly that's going to have an impact on retail sales. how big, yet to be determined, but i certainly think there's going to be an income, inexplicable if there weren't. >> understand. steve, thank you very much for joining us today. >> you're very welcome. >> coming up next, the fiscal fine print. brian has read all 517,000 pages

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